The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are as follows: Income Statement Sales Revenue $48,900 Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 19,560 4,800 9,650 6,900 4,200 2,000 1,100 Net Income %$4 690 Selected Balance Sheet Accounts Ending Beginning Balances Balances $ 575 1,660 Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Accounts Payable Salaries Payable Utilities Payable 755 915 93 84 98 127 650 692 112 104 58 18 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are as follows: Income Statement Sales Revenue $48,900 Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 19,560 4,800 9,650 6,900 4,200 2,000 1,100 Net Income %$4 690 Selected Balance Sheet Accounts Ending Beginning Balances Balances $ 575 1,660 Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Accounts Payable Salaries Payable Utilities Payable 755 915 93 84 98 127 650 692 112 104 58 18 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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